Comprehensive SummaryHerein, a [1,2]‐phospha‐Brook rearrangement‐initiated palladium‐catalyzed cyclization reaction for base‐controlled selective synthesis of 2H‐isoindole‐1‐carboxamide and 2H‐isoindole‐1‐carbonitrile derivatives has been described. This strategy features double isocyanide insertion, efficient bond combinations, simple operation and reaction conditions. Mechanistic studies show that the [1,2]‐phospha‐Brook rearrangement is the key step in this reaction. This protocol offers a novel and concise strategy for the synthesis of 2H‐isoindole derivatives.